Kinetic’s Future of OOH Report: Summary

An exhaustive study of the future of poster advertising in the UK by lifestyles and environments agency Kinetic Worldwide, reveals dramatic change is afoot for the oldest form of advertising.

Out of Home media will not only increase its market share as a result of digital technology over the next ten years, but consumers will become accustomed to interacting with large numbers of smart posters.

Kinetic has analysed industry data, consulted almost twenty media and advertising experts and carried out new research to draw a series of conclusions including:

• More than 100,000 digital posters will be visible in 30 major cities across the country. Many posters in shopping malls, high-streets, leisure environments, transport systems and roadsides will be linked to the internet and capable of interacting with your mobile delivering information such as Facebook promotions. Even bus stops are set to go interactive in the next few years.

• Large numbers of “smart” posters able to recognise whether you are male or female, your age and even whether you are happy or sad will appear over the next five years. Kinetic has already tested a smart poster and the first poster advertising campaigns that will react to passers-by are expected in the near future. Science fiction style technology enabling posters to recognise individuals is also nearing launch.

• Digital technology will grow Out of Home’s (OOH) total share of media from £880 million (2010) to £1.15 billion by 2020. Digital revenues will reach almost £260 million accounting for approximately 23% of total OOH spend.

• NFC and social media to transform relationship between posters and consumers with some urban areas delivering a multi-media experience. Instantaneous download capability within a growing number of smartphones, matched by NFC technology in posters, could transform promotional marketing and the distribution of social media and entertainment content even in low-dwell time urban environments. In addition a significant number of posters are expected to be capable of recognising consumer types and moods.

• Research indicates consumers already want to interact with posters: New research by Kinetic reveals that half of consumers already see the value of interacting with posters and 20% even expect to be recognised by posters in the future; 75% expect to carry a smartphone or tablet computer; 66% expect to see digital screens in most city centres; 70% think digital posters beneficial in high-dwell time locations.

• Technology will forge a far closer relationship between poster advertising and other media. Kinetic’s analysis suggests OOH will develop a symbiotic relationship with mobile marketing and internet based campaigns, opening up new revenue streams. Content will play an increasing role in OOH media and billboards are likely to become a distribution point for digitised news and entertainment content.

• Dynamic use of digital sites to create a powerful urban direct response medium. The deployment of national digital poster networks in proximity to retail locations and the integration of day-part flexibility; real-time planning and new audience-based trading systems will unlock the potential to drive “smart” retail promotional marketing.

• The medium’s operational structure to evolve: Two broad OOH sectors will emerge: Broadcast and Targeted. Broadcast will include large numbers of well-positioned static sites and premium digital sites. Targeted will include national networks of digital sites capable of time-flexible distribution and real-time reactive campaigns.

James Copley, COO UK at Kinetic Worldwide comments: “Rather than being a disruptive force, digital technology will create enormous opportunities for Out of Home media.

“Our analysis, consultations and research suggest the poster industry is entering a transformative period; one in which it will gain market share by integrating technology and delivering a wider range of effective and engaging propositions.

“What is clear is that rather than just replacing static sites, digital posters will enable Out of Home media to offer advertisers both reach and more direct engagement.

“The potential to fuse digital posters with mobile interaction also has great potential. It’s up to our industry to grasp these challenges and opportunities.”

For the full report, click here.